AMZN Options Signal Bullish Bias: Focus on $235 Call Wall and Strategic Entry Zones for 2026-01-09 Expiry

• AMZN’s price dropped 2.28% to $225.57, breaking below its 30-day moving average of $228.17.
• Call open interest dominates at strikes like $235 and $240, with a put/call ratio of 0.74 (calls outweighing puts by 34%).
• Block trades show large institutional bets: a $480K buy of 500 AMZN20260116C250 calls and a $1.35M put trade at AMZN20251121P240.
• BMO raised AMZN’s price target to $304, while a downgrade cited valuation risks—creating a tug-of-war for traders.

Here’s the thing: AMZN’s options market is screaming bullish despite today’s selloff. The call-heavy open interest and block trades suggest big players are positioning for a rebound—maybe even a breakout. Let’s break down why this could be your next trade setup.

The Call Wall at $235 and Institutional Hedges

AMZN’s options chain is packed with call open interest at the $235 and $240 strikes for Friday’s expiry (OI: 24,571 and 18,229, respectively). That’s not random—it’s a crowd. Think of it like a wall: if the stock rallies past $235, those calls could get exercised, creating upward pressure.

But here’s the catch: the put open interest isn’t negligible. The $215–$225 puts (OI: 7,393–6,066) act as a floor. If AMZN dips below $228.77 (middle Bollinger Band), those puts could limit downside.

Block trades add intrigue. The $480K buy of 500 AMZN20260116C250 calls (expiring Jan 16) is a clear bullish bet. Meanwhile, the $1.35M AMZN20251121P240 put trade (expiring Nov 21) hints at hedging by long-term holders. It’s a mix of short-term aggression and long-term caution.

News: AI Hype vs. Valuation Reality Check

BMO’s $304 price target is fueled by AWS AI momentum and a $35B India investment. That’s the story—and stories move markets. But the downgrade warning (targeting $255) adds friction.

Here’s the rub: traders are pricing in the AI optimism already. The call-heavy options chain reflects that. But if earnings or AI monetization progress fall short, the $221.61 lower Bollinger Band becomes critical. Retail investors might panic-sell puts if the stock stumbles there.

Actionable Trade Ideas: Calls, Spreads, and Precision Entries

For options:

• Buy AMZN20260109C235 (next Friday expiry) if AMZN breaks above $232.34 (30D support). Target $240–$245.
• Bull call spread: Buy AMZN20260109C235 and sell AMZN20260109C240. Caps risk while riding the call wall.

For stock:

• Entry near $228.77 (middle Bollinger Band) if AMZN holds above $224.82 (intraday low). Target $235–$237.5.
• Put spread: Buy AMZN20260109P225 and sell AMZN20260109P220 if AMZN dips to $221.61. Caps risk at $4.

Volatility on the Horizon

AMZN’s options market is a chessboard. The call wall at $235 and block trades suggest a fight for $250+ by mid-January. But don’t ignore the puts—they’re there for a reason. If you’re long, hedge with the AMZN20260116P230 put (block traded at $524K). If you’re short, watch the $228.77 level like a hawk.

Bottom line: This is a high-conviction setup. The AI narrative and options flow are aligned for a rebound—but the 2.28% drop today is a reminder that volatility isn’t gone. Play it smart: size your positions to survive a pullback, and keep an eye on that $235 strike. It’s either a wall or a warning—depending on where AMZN ends up by Friday.